The home-furnishings company reported adjusted earnings of $2.49 per share in the second-quarter, nearly four times that of last year and well above the $1.75 that was expected by Wall Street, according to Bloomberg data. Sales totaled $642 million - up 4% from last year's $615 million - but that missed the $660 million that analysts were anticipating.
"Our record second quarter results demonstrate our commitment to earnings growth, the emerging power of our new business model, and our continued success revolutionizing physical retailing," the company said in the press release.
"As articulated since the beginning of the year, we continue to manage the business with a bias for earnings versus revenue growth. We will restrain ourselves from chasing low quality sales at the expense of profitability, and instead focus on optimizing our new business model while building an operating platform that will enable us to compete and win over the long-term."
Looking ahead, RH raised its full-year guidance for a third time and now sees adjusted diluted earnings per share to be in the range of $7.35 to $7.75, 15% up from its previous estimate of $6.34 to $6.83. Meanwhile, the company cut its revenue guidance by 2% to $2.51 billion. Analysts surveyed by Bloomberg were expecting earnings of $7.52 per share on $2.52 billion sales.
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